Since my last blog seemed to get a lot of interest, here's another issue for agents to be on the lookout for.  In the New Hampshire Purchase & Sales Agreement Page 2 Section 10:

10. TAXES, CONDO FEES, SPECIAL ASSESSMENTS, RENTS, WATER AND SEWERAGE BILLS AND FUEL IN STORAGE SHALL BE PRORATED AS OF TIME AND DATE OF CLOSING OR: ALL UTILITIES AND TAXES TO BE PAID IN FULL AND KEPT IN GOOD STANDING UNTIL THE CLOSING DATE.

I can't speak for every state, I can't even speak for every town because public utilities are handled differently by different towns, but locally in this area both city water and city gas bills transfer to the new owner.  If you don't have something similar to the above verbiage, you could possibly be putting your buyers at risk.  Once again, as the buyers agent, any outstanding bills that show up on your buyers doorstep the day after closing could essentially come back and find you.  Ask for help, find your broker, protect your buyer and yourself.

Wishing you the best in life and business,

Joshua Matthews-Keller Williams Coastal Realty

 
This post has been included in New Hampshire Information

5 Comments on Protect your Buyers: Bank owned trick #2

FEB
26
2008

Greetings Wakefield NH!  I am formerly from Manchester NH and was a Realtor for Prudential Verani in Bedford NH.  Just wanted to say Hi and thanks for the blog.  Excellent verbiage to add to your contracts regarding utilities.

6:10am • #1
2 Featured Posts
Well - I see the point - but I do a lot of REO's and the banks have always paid the bill right up to closing - no questions asked. As long as I submit them timely - withing 10 days of closing.
6:07pm • #2

Kevin,

 Unfortunately your experience isn't always the case.  I just had a friend from another office get stuck with a $770 water bill.  I only bring it up to point out the possibility, not to say that every bank is doing it.

Wishing you the best in life and business,

Joshua Matthews-Keller Williams Coastal Realty

6:23pm • #3
FEB
27
2008
Thanks for another great post Joshua. Keep' em coming man. I'm learning  a lot.
6:29pm • #4
108,624 Points 11 Featured Posts
Joshua, Great tips for those who are learning how to write offers on REOs. When I receive offers on my REO listings I like them to be clean but a lot of times the agent has not protected his client due to lack of knowledge. Keep up the good work.
7:23pm • #5

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Joshua Matthews

Wakefield, NH

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Keller Williams Coastal Realty

Address: 501 Islington Street Suite 2, Portsmouth, NH, 03801

Office Phone: (603) 610-8500 x 576

Cell Phone: (603) 781-4030

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